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Cash Use in Australia

Author

Listed:
  • Eden Hatzvi

    (Reserve Bank of Australia)

  • Jessica Meredith

    (Reserve Bank of Australia)

  • Rose Kenney

    (Reserve Bank of Australia)

Abstract

This article uses results from the 2013 Survey of Consumers’ Use of Payment Methods and regression analysis to examine trends in cash use in Australia. The results show that cash remained the most common form of payment, though its use relative to other payment methods has declined over recent years. Older participants were more likely to use cash than younger participants and all participants were more likely to use cash for low-value transactions relative to other payment methods. In addition, participants were asked about their holdings of banknotes in their ‘wallet’ (i.e. on their person) and elsewhere, with the results suggesting that cash – particularly high-value denominations – was being used as a store of value and not just for transactional purposes.

Suggested Citation

  • Eden Hatzvi & Jessica Meredith & Rose Kenney, 2014. "Cash Use in Australia," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 43-54, June.
    • Handle: RePEc:rba:rbabul:jun2014-06
    as

    Download full text from publisher

    File URL: https://www.rba.gov.au/publications/bulletin/2014/jun/pdf/bu-0614-6.pdf
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    References listed on IDEAS

    as
    1. Nicole Jonker & Anneke Kosse & Lola Hernández, 2012. "Cash usage in the Netherlands: How much, where, when, who and whenever one wants?," DNB Occasional Studies 1002, Netherlands Central Bank, Research Department.
    2. Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
    3. Zhu Wang & Alexander L. Wolman, 2014. "Payment Choice and the Future of Currency: Insights from Two Billion Retail Transactions," Working Paper 14-9, Federal Reserve Bank of Richmond.
    4. Carlos Arango & Dylan Hogg & Alyssa Lee, 2012. "Why Is Cash (Still) So Entrenched? Insights from the Bank of Canada’s 2009 Methods-of-Payment Survey," Discussion Papers 12-2, Bank of Canada.
    5. Crystal Ossolinski & Tai Lam & David Emery, 2014. "The Changing Way We Pay: Trends in Consumer Payments," RBA Research Discussion Papers rdp2014-05, Reserve Bank of Australia.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Amanda Evans & Greg Gallagher & Amanda Martz, 2015. "Banknote Stakeholder Engagement," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 01-12, September.

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